Refer to the Graph Above

Multiple Choice

Refer to the graph above. The economy is at point B₂, and then aggregate demand increases. In the short run, the economy will:

A) Stay at point B₂ and remain there in the long run
B) Move to point C₂ and in the long run move on to B₃.
C) Move to point B₃ and in the long run move on to C₂.
D) Move to point B₁ and in the long run move back to B₂.